How (and Why) I Get Earnest Money on Every Assignment

learningThis is JP here bringing you another eye-opening video lesson. As most of you know, I’ve been in this business for more than 15 years, and yet I’m still learning – and learning – and learning. (Get the picture?)

I ran into a couple of prime examples of this just recently in my own business. It has to do with assignment of contract and getting earnest money.

These two examples are quite revealing, so in this video I’ve taken the time to walk you through exactly what happened. I think you’ll agree that there’re some needed lessons to be learned here. (You may want to expand the video to full screen so you can see the complete graphic that I’m using.)

Watch, enjoy and learn…

As I promised in the video, here’s the actual assignment contract clause that we are now using. Before you use it, you may want to run it by your legal professional just for safety’s sake. (I’m not giving any legal advice here.)

EARNEST MONEY: Assignee has paid (or will pay within two business days after signing this agreement) an earnest money deposit of $2,000 by check or wire, to be held in escrow and made payable directly to [YOUR TITLE COMPANY’S NAME] located at [YOUR TITLE COMPANY’S ADDRESS]. This earnest money is NON-REFUNDABLE to Assignee unless clear, insurable title is non-conveyable or the property owner is not available to close within the time period of the original purchase contract. If closing does not occur for any other reason, then earnest money shall be dispersed to Assignor. This assignment is not considered valid until Assignee’s earnest money has been received by holder.

Well, that’s all for today, folks. Keep on learning…

How Are You Handling Earnest Money Payments?

Be sure to leave your comments below. How has your business been affected in similar situations with regard to earnest money? We’d love to hear. Because, as I said, we’re all still learning.

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